According to TransUnion, lenders are starting to offer fewer loans to applicants with low credit scores. This is largely due to a recent high rate of delinquencies among subprime borrowers. Therefore, it’s more important than ever for Michigan consumers with damaged credit to seek credit repair. This is especially true if you need to buy a home or car in the near future. Your credit report and credit score always matter, but they are even more important when lenders tighten their standards. Even if you don’t plan on financing a large purchase in Michigan any time soon, starting the credit repair process now is a good idea. This way, your credit will be just as ready as you are when you decide that you need a loan.
Why Credit Repair is Always a Good Idea for Michiganders with Low Credit Scores
The good news is that this move away from subprime lending isn’t, according to most experts, a sign that another recession is coming soon. Luckily, while on the rise, delinquencies are still at an historical low. These same experts, in fact, are advising consumers with low credit scores to not panic. However, if you work to get better credit through credit repair, you won’t ever need to panic.
Full credit recovery is possible for all Michigan consumers, even those with bad credit scores. Whether you hire a credit repair company or choose to fix your own credit, your efforts will pay off. Regardless of economic trends, having good credit is always advantageous. With a good credit score, you won’t have to worry about loan denials, and you’ll save money on interest rates. In order to get the best credit repair, Michiganders should decide on a plan and stick to it. Also, if you plan on entering one of the many credit repair programs out there, make sure to hire a reputable service.
Tips for Michigan Consumers with Low Credit Scores Looking to Hire a Credit Repair Company
A handful of bad credit repair services have made it hard on the many good credit repair companies that offer valuable help to Michigan consumers with damaged credit. Yet, because there are some shady companies out there, consumers should exercise caution when looking for paid credit repair. After all, you don’t want to waste your money or, even worse, end up doing something illegal because you trusted the wrong service.
While looking over credit repair sites, be on the lookout for some red flags. If you see that any company is making the following claims, stay away.
1 – “We can instantly fix your credit overnight.”
Credit repair companies, if they do their job right, can help you improve your credit, but no one can fix bad credit overnight. Normally, in addition to what a credit repair company can do, consumers must make other efforts, over time, to fully restore a bad credit score.
2 – “We will remove all negative items from your credit reports.”
Even if a credit repair service disputes every negative item on your credit reports, it doesn’t mean that they’ll all come off. Of course, errors and mistakes should come off after disputing them. Yet, legitimate negative information typically stays until it expires.
3 – “We guarantee that your credit score will jump by at least 100 points.”
Even the best credit pros can’t predict exactly how many credit score points you will gain from credit repair – if any. Instead, the best credit repair companies set realistic expectations and attainable goals for their clients.
In addition, watch out for credit repair services that ask for money up front. Legally, these companies are supposed to first provide a written contract outlining their intended services. Then, they do the work they’ve agreed to accomplish, and THEN they get paid.
Other Ways for Michigan Consumers to Improve Poor Scores
In order to build good credit over time, Michiganders should first make sure that they are current with all of their bills. Late payments hurt credit scores, and late fees are expensive, so a lot is accomplished by paying bills on time.
Next, you should pay down high credit card balances. Carrying balances that use up more than 30% of your available credit makes lenders think that you’re relying too much on credit. This is why, when scoring companies calculate your credit score, one of the factors that counts is your utilization ratio.
Finally, Michigan consumers engaged in credit repair should check their credit reports. Under the Fair and Accurate Credit Transactions Act (FACTA), you’re entitled to free copies of your credit reports from the major credit bureaus every 12 months. Just go to www.annualcreditreport.com to request your credit reports from TransUnion, Experian, and Equifax. You can get credit reports from other sources. However, the copies you get through annualcreditreport.com are necessary if you need to dispute errors.
Speaking of errors, if you spot inaccuracies on any of your credit reports, contact Credit Repair Lawyers of America in Michigan. We will remove these errors for free.
The Free and Legal way to Get Better Credit
Don’t let errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America in Michigan, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? All of our fees come from the defendants in settled cases. This is why our clients pay nothing for the work we do.
Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (248) 353-2882 or contact us on our contact page.